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How to Process a Contract

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The Journey Of A Contract

Contract & support documents are prepared by BRCC

department employees & signed where appropriate.

Contract & support documents are sent to OAF forreview & approval

OAF returns

contract & support documents back to department so

that the contractor can sign contract

or corrections can be made

When contractor signs & returns(with all areas signed)

the contract & support documentsAre sent to the

Vice Chancellor of Administration & Financefor appropriate signatures

&finial approval

(contract may be sent to OCR or LCTCS if required)

After the Vice Chancellor of Administration & Finance

Signs and approves the contract & support documents

are returned to OAF for processing.(contract is not executable until approved

by V.C., OCR, and/or LCTCS)

When payments are due to contractors the department who

initiated the contract mustsubmit a detailed invoice to OAF

- Accounts Payable Sections

Payments are made by OAF against contractsafter submission of invoice and requested

support documents have been provided by Dept.

Upon completion of thecontract, the departmentsubmits a performance

evaluation to OAF

OAF will process and send the yellow copy of the

requisition to the department.

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What Are The Basics

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Opening Paragraph

• Date

• Month

• Year

• Contractor’s Name

• Contractor’s Complete Address

• Contractor’s Phone Number

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Section 1• Summary: Describe work to be performed – in detail

• Goals: Describe what is to be accomplished

• Objectives: Describe how the goals will be met

• Deliverables: What the contractor will do or provide • Performance Measures: Explain how you plan to measure

the quality of the product or service

• Monitoring Plan: Who will monitor and the way you determine performance measures are met

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Section 2

• Maximum amount to be paid on this contract

• Schedule of payments – single payment (upon completion of service) or other (specify by time sheet, quarterly etc…)

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Section 3

• No additional information required

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Section 4

• Contractor’s social security number or company’s tax id number

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Sections 5 - 7

• No additional information required

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Section 8

• Beginning date of the contract

• Ending date of the contract

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Section 9

• No additional information is required

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Section 10

• Date contract is signed

• 4 Witnesses’ signatures – 2 for BRCC and 2 for the contractor

• Contractor’s signature – original signature is required

• Director/Department Head’s signature

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Beyond the Basics

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For Contracts Over $5,000

• Verify/Complete steps 1 – 7 in the Letter of Certification

• Retain any cost benefit analysis and other support documentation for future reference

• Complete the letter by providing the assignment of the monitoring and liaison function, and all appropriate signatures

• Submit only the Letter of Certification as an attachment to the contract

Professional Services Contract

Only a few services are considered to be a professional service contract. These are the types of service providers that would be submitted on a Professional Services contract:

Lawyers

Doctors

Dentists

Psychologists

Certified Advanced Practice Nurses

Veterinarians

Architects

Engineers

Land Surveyors

Landscape Architects

Accountants

Actuaries (Professionals who deal with the financial impact of risks)

Claims Adjusters

All other types of services are considered Personal or Consulting contract.

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For Consulting Services Contracts

• For an individual - attach a copy of their resume

• For a company – attach company credentials and resumes for the representatives that will be sent by company

Personal Services Contract

• Creative or Artistic Skills

• Highly Technical Skills

• Unique Individual Skills or Talents

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Examples of Personal Contracts

• Graphic Artists

• Sculptor

• Musician

• Photographer

• Writer

• Handwriting Analyst

• Court Reporter

• Foreign Representative

• Chef

• Expert Witness

• Paramedical

• Therapist

• Private Investigator18

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Out of State Corporation

Certificate of authority and disclosure of ownership is required to do business in Louisiana

• Must be official document from the Secretary of the State

• Sometimes available on the internet

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Other Attachments

• BA-22 Form – contracts $20,000 or more• Multi-Year Letter – contracts that last more than

12 months• Late Letter – sent to contract review if

servicesegin prior to contract approval• Board Resolution – identifies individuals

allowed to sign on the companies behalf• W-9 Form must be attached to all contracts• Contract Transmittal Form with all contract.

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Common Delays In Contract Approval

• Lack of proper signatures

• Incomplete information

• Conflicting information

• Lack of required attachments